Ashok Leyland, India’s third-largest commercial vehicle maker based in Chennai, Tamil Nadu, ended FY25 with ₹4,242 crore net cash and plans acquisitions and new market expansion amid strong profit growth.
Ashok Leyland Ltd, the flagship company of the Hinduja Group and India’s third-largest commercial vehicle manufacturer, is planning to expand its footprint into new markets and explore acquisitions in the current financial year. The company ended FY25 with a strong net cash position of ₹4,242 crore, marking a significant turnaround from the previous year’s net debt of ₹89 crore.
Ashok Leyland, known for its trucks and buses, generated ₹3,284 crore in cash in the fourth quarter of FY25. While maintaining a capital expenditure budget of around ₹1,000 crore, similar to FY24, the company aims to leverage acquisitions for access to new technologies and geographies that align with its core business, according to Dheeraj Hinduja, Executive Chairman.
Despite the positive cash position, the company faced challenges with its UK-based e-bus subsidiary, Switch Mobility Ltd, which is considering shutting down its Sherburn manufacturing facility due to weak demand. Ashok Leyland plans to source vehicles for the UK market from other locations.
India remains a promising market for electric vehicles, supported by government incentives, said Hinduja. The company expects revenue growth to accelerate in FY26, driven by a mid single-digit expansion in India’s commercial vehicle market, macroeconomic improvements, and favorable monsoon conditions.
Ashok Leyland reported a modest 1% revenue growth to ₹38,753 crore in FY25, with profit after tax surging 26% to ₹3,303 crore due to improved operational efficiency and lower commodity costs. The company’s export volumes grew by 29% to 15,255 units.